Switcher Mortgage

Switch Your Mortgage

1. We want to save money on our monthly repayments, what do we have to do?

In the current climate of interest rates increasing and with possible future rate increases, a lot of people are considering switching their mortgage in order to obtain a longer-term fixed rate. They feel that a longer-term fixed rate will give them the certainty of knowing what their mortgage repayments are in an environment of increasing interest rates. People feel that this can help them to budget easier and move forward with their lives without the fear of what might happen to their mortgage repayments.

There are many different types of interest rate packages which could mean good savings as well as certainty for you and your family.

2. I am on a tracker rate, should I switch my mortgage to a fix rate?

It probably first depends on what your tracker margin is. Some people have a very small margin which means that even with the ECB interest rate increases, their increased tracker interest rate is still manageable. However, some others may have a much higher margin which means that their tracker rate may no longer be as competitive as it was before, therefore it could be worth your while to see what else is available.

It also depends on what stage you are in life. For example, if you have a young family, you may prefer the certainty of knowing what your monthly repayment will be for the next number of years in order to help you better budget for your family’s growing needs. Moving from a tracker mortgage to a fixed mortgage could give you that peace of mind and essentially remove one less thing to worry about.

I am on a tracker rate, should I switch my mortgage to a fix rate?

3. Can I consolidate my personal loans when switching my mortgage?

In certain circumstances, you can. Each bank has their own policy in relation to this. For example, the debt may only be a certain percentage of your mortgage balance or they may only allow you to consolidate loans that are related to the house i.e. some banks will not consolidate a car loan. Although, each bank works differently regarding this, all banks are constantly reviewing and changing their policies on a regular basis. This means that if you cannot consolidate your loans now, you may be able to in say, 6 months’ time.

4. Can we get a Top-Up for works to our home when we switch our mortgage?

Yes, this is possible. Some banks can offer up to €75,000 equity release for upgrades to your home upfront when you switch your mortgage over to them.

If you are seeking structural upgrades, there can be a different process, but you may even be able to release more/get a bigger top-up if you provide costings from your builder, architect plans and planning permission where applicable.

Can we get a Top-Up for works to our home when we switch our mortgage?

5. How to Switch your Mortgage in 3 steps

Step 1

Contact your existing bank in order to see if you would be charged a breakage cost if you were to switch now. It could be €0 or it could be excessive. With this information we will run the comparison calculations in order to see if it is worth your while to switch now or simply stay with your own bank and wait until a later date.

Step 2

The following details are required in order to carry out an accurate comparison. You can send us a quick text or email with the below information in order to see what savings you could make:

Current mortgage balance
Estimated market value of your home
BER rating
Current term remaining on your existing mortgage
Current interest rate
Annual salary/salaries
Monthly repayments on any other loans that you have

Step 3

If switching your mortgage makes sense for you based on step 1 and step 2 above, we can start the process. A full mortgage application is required by the banks (like when you applied in order to purchase your home). We will walk you through this will make it as straight forward as we possibly can.

Normal lending terms and conditions apply

Are there costs involved?

Yes, there are. You will have the following:

1. Solicitor fees. Check with your Solicitor what the price is. Note, your Solicitor has a lot less work to do this time than when you bought the house, therefore the price should reflect this.

2. Bank valuation fee of c.€150 – €300 + VAT.

3. Structural survey – If your property is over 100 years old, the bank will require an up-to-date survey, this can cost c.€500 +.

Note: some banks will give you some cash back which can help to cover your switching costs